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Work to lay concrete for two new Kaiga units launched

March 01, 2026 6 min read Science & Technology Economics GS Paper 3
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What Happened

  • Work to lay concrete (first pour — the formal start of civil construction) for two new nuclear units at Kaiga Generating Station in Karnataka has been launched.
  • The two new units — Kaiga 5 and 6 — are 700 MW Pressurised Heavy Water Reactors (PHWRs) each, adding 1,400 MW to the existing 880 MW capacity at the Kaiga site.
  • Nuclear power plants in India are currently producing approximately 85 million units (kWh) of electricity per day, underlining the sector's growing contribution to the national grid.
  • The construction is being carried out by NPCIL (Nuclear Power Corporation of India Limited) under the Department of Atomic Energy.
  • In April 2025, NPCIL awarded an Engineering, Procurement, and Construction (EPC) contract for units 5 and 6 to Megha Engineering and Infrastructure Limited (MEIL) for approximately Rs 12,800 crore.
  • Kaiga 5 and 6 are part of a fleet of 10 indigenous 700 MW PHWRs sanctioned by the Indian government to be built in fleet mode — a first for India's nuclear programme.
  • India's current installed nuclear capacity stands at approximately 8,780-8,880 MW from 24-25 operational reactors across 7 nuclear power plants.

Static Topic Bridges

NPCIL — India's Nuclear Power Operator

Nuclear Power Corporation of India Limited (NPCIL) is the sole entity authorized to develop and operate nuclear power plants for commercial electricity generation in India. It was established in September 1987 as a public sector enterprise under the Companies Act, 1956, and operates under the administrative control of the Department of Atomic Energy (DAE), Government of India. The legal authority for NPCIL's monopoly over nuclear power comes from the Atomic Energy Act, 1962, which restricts nuclear material processing and power plant operation to the Central Government or government-authorized bodies.

  • Established: September 1987 as a government company under Companies Act
  • Administrative authority: Department of Atomic Energy (DAE), Government of India
  • Legal basis: Atomic Energy Act, 1962
  • Current installed capacity: ~8,780-8,880 MW (25 reactors in 7 plants, as of 2025)
  • Daily output: ~85 million units (kWh) — approximately 3% of India's total electricity generation
  • Nuclear power target: 22,480 MW by 2031-32; 100 GW by 2047 (Viksit Bharat vision)
  • Fleet mode: 10 indigenous 700 MW PHWRs approved — standardized design, faster and cost-efficient construction

Connection to this news: NPCIL is the developer and future operator of Kaiga 5 and 6; the EPC award to MEIL and the first concrete pour mark the formal civil construction phase under NPCIL's programme.

The Atomic Energy Act, 1962 (Act No. 33 of 1962) is the primary legislation governing India's nuclear programme. It grants the Central Government exclusive rights to produce, develop, use, and dispose of atomic energy and all matters connected therewith. Under this Act, no private entity can own or operate a nuclear power plant — a provision that currently prevents foreign or domestic private companies from independently setting up nuclear stations. Proposals to amend the Act to allow private sector and state government participation were floated in 2025 as part of India's 100 GW nuclear ambition.

  • Full name: Atomic Energy Act, 1962 (Act No. 33 of 1962; enacted September 15, 1962)
  • Key restriction: Central Government has exclusive authority — private entities cannot own nuclear fuel or operate reactors independently
  • Regulatory body: Atomic Energy Regulatory Board (AERB) — set up under the Act for safety oversight
  • AERB replacement: Nuclear Safety Regulatory Authority (NSRA) Bill has been discussed to make nuclear regulation independent of DAE
  • Amendment proposal (2025): Amend Act to allow private sector participation to achieve 100 GW by 2047 target
  • Civil Liability for Nuclear Damage Act, 2010: Governs compensation in case of nuclear accidents; India is not a party to the Vienna Convention but has a domestic liability framework

Connection to this news: The Kaiga 5&6 project proceeds under NPCIL's exclusive mandate derived from the Atomic Energy Act, 1962; the discussion about amending this Act to enable private participation provides the larger policy context.

Types of Nuclear Reactors in India — PHWR vs VVER

India uses multiple reactor technologies. The dominant technology is the Pressurised Heavy Water Reactor (PHWR), developed indigenously based on the Canadian CANDU design. PHWRs use natural uranium as fuel and heavy water (deuterium oxide, D₂O) as both moderator and coolant — making India self-sufficient in fuel as it mines its own uranium. At Kudankulam (Tamil Nadu), Russia-supplied VVER (Vodo-Vodyanoi Energetichesky Reaktor — Water-Water Power Reactor) reactors of 1,000 MW each are in operation; these are Light Water Reactors (LWRs) using enriched uranium.

  • PHWRs at: Rawatbhata (RAPS), Kakrapar (KAPS), Narora (NAPS), Kaiga (KGS), Tarapur (partially), Kalpakkam (MAPS) — all NPCIL
  • PHWR advantage: Uses natural uranium (domestically available), no enrichment needed
  • Heavy water: Produced at Heavy Water Board plants; expensive but enables natural uranium use
  • VVER at Kudankulam (Tamil Nadu): Russian-designed LWR, 1,000 MW each (Units 1-2 operational, 3-6 under construction)
  • Fast Breeder Reactor (FBR): India's three-stage nuclear programme — PFBR at Kalpakkam (under commissioning)
  • Three-stage nuclear programme: Stage 1 (PHWRs, natural uranium) → Stage 2 (FBRs, plutonium + thorium blanket) → Stage 3 (thorium-based reactors)

Connection to this news: Kaiga 5 and 6 are 700 MW PHWRs — a scaled-up version of India's indigenous 220 MW PHWR design, representing an advancement in the Stage 1 programme and utilizing domestically available natural uranium.

India-US Civil Nuclear Agreement and NSG Waiver

India was effectively isolated from global nuclear commerce for over three decades after its 1974 Pokhran test and 1998 tests, as it is not a signatory to the Nuclear Non-Proliferation Treaty (NPT). The India-US Civil Nuclear Agreement (also called the 123 Agreement) was signed in 2008, following the Hyde Act (US domestic enabling legislation, 2006). The 123 Agreement enabled civil nuclear cooperation between India and the US. Crucially, the NSG (Nuclear Suppliers Group) — a 48-nation cartel controlling nuclear technology exports — granted India a special waiver in September 2008, allowing India to access civilian nuclear technology and fuel from member states without being bound by full-scope IAEA safeguards.

  • India-US 123 Agreement: Came into force December 2008; 40-year agreement
  • Hyde Act, 2006: US domestic legislation enabling the 123 Agreement
  • NSG waiver: Granted September 6, 2008; India is the only non-NPT state with NSG trading rights
  • NSG: 48-nation group controlling nuclear technology exports; India is NOT a full member (has applied, blocked by China)
  • IAEA safeguards: India placed civil nuclear facilities under IAEA safeguards (India-specific safeguards agreement); military facilities remain outside IAEA purview
  • Subsequent agreements: India signed nuclear cooperation agreements with Russia, France, UK, Canada, Australia, Japan (JAEC, 2016) enabling full nuclear fuel cycle cooperation

Connection to this news: The nuclear cooperation agreements and NSG waiver opened access to nuclear technology imports for India — enabling collaborations like Kudankulam (Russia). The indigenous PHWR programme at Kaiga is a direct result of India's three-stage strategy, which was designed precisely to achieve nuclear self-sufficiency without dependence on imported technology.

Key Facts & Data

  • Kaiga Generating Station: Karnataka; currently 4 units (220 MW PHWRs each) = 880 MW
  • New units: Kaiga 5 and 6 — 700 MW PHWRs each, total addition 1,400 MW
  • EPC contract: MEIL (Megha Engineering and Infrastructure Ltd) for ~Rs 12,800 crore (April 2025)
  • India's installed nuclear capacity: ~8,780-8,880 MW (25 reactors, 7 plants)
  • Daily nuclear power output: ~85 million units (kWh)
  • Nuclear share in India's electricity mix: ~3%
  • NPCIL: Government company under DAE; established September 1987
  • Atomic Energy Act, 1962: Legal basis for NPCIL's monopoly
  • NSG waiver: September 6, 2008 — only non-NPT country with NSG trading access
  • India-US 123 Agreement: In force from December 2008
  • Fleet mode PHWRs: 10 units of 700 MW sanctioned; Kaiga 5&6 are first pair
  • Target: 22,480 MW nuclear capacity by 2031-32; 100 GW by 2047
  • Three-stage nuclear programme: PHWRs → FBRs → Thorium reactors (designed for India's large thorium reserves)